Search found 866 matches

by e5116
Thu Feb 29, 2024 7:09 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203985

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

I think I want to "load up" on the I Bonds with 1.2% fixed rates, but then I also don't want to redeem existing I-Bonds and pay taxes on it. I guess I need to do the math, but seems like a lot of people just do the comparison of "3 months penalty" vs. "higher fixed rate" but don't account for the tax deferral in the calculation. If someone is in a high tax bracket, that could be a meaningful amount. I want to defer the tax as long as possible myself. With that in mind, I think I'm holding on to my existing bonds and maybe will add to the mix, but not sure if I really want THIS many I-Bonds. I guess it's a reasonable cash substitute, but I also have a good chunk in Money Market funds for now. Those pay well for...
by e5116
Thu Feb 29, 2024 8:22 am
Forum: Personal Finance (Not Investing)
Topic: I got my tax refund today--and it doesn't match what I filed!
Replies: 31
Views: 5212

Re: I got my tax refund today--and it doesn't match what I filed!

I used to work for a regional bank in their IT department. It was fun to see the problems we got to see. One time a teller entered a deposit wrong. Instead of $7.63 it was entered as $763,000,000 or something insane. Nobody had the privileges to change it right away, so the bank had to talk to the customer and ask them to just hold tight for a few days and not spend it all. We had to write a special program to put in an accounting entry to reverse it I think. This was back when we ran all the programs overnight on a mainframe: Someone made a mistake, and in the process of backing up in the process steps they did a second something wrong. The result was that everyone who had a checking account and a mortgage at our bank made their monthly m...
by e5116
Wed Feb 28, 2024 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Thread on Speed of 2023 Tax Refunds
Replies: 43
Views: 5035

Re: Mega Thread on Speed of 2023 Tax Refunds

Is it just because of the state I'm in (Illinois) or does the Fed refund always come WAAAAY before the state refund?

This year, I actually owe money to the feds which is fairly rare for me, while I'm getting a refund from the state. They're basically a wash. Because of this, I haven't filed yet but of course, I recognize I can schedule the payment for mid-April.
by e5116
Wed Feb 28, 2024 11:39 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203985

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

I think I want to "load up" on the I Bonds with 1.2% fixed rates, but then I also don't want to redeem existing I-Bonds and pay taxes on it. I guess I need to do the math, but seems like a lot of people just do the comparison of "3 months penalty" vs. "higher fixed rate" but don't account for the tax deferral in the calculation. If someone is in a high tax bracket, that could be a meaningful amount. I want to defer the tax as long as possible myself. With that in mind, I think I'm holding on to my existing bonds and maybe will add to the mix, but not sure if I really want THIS many I-Bonds. I guess it's a reasonable cash substitute, but I also have a good chunk in Money Market funds for now. Those pay well for ...
by e5116
Wed Feb 28, 2024 11:26 am
Forum: Personal Investments
Topic: Floating an Unusual 529 Strategy
Replies: 38
Views: 3046

Re: Floating an Unusual 529 Strategy

^I was going to point out the same thing RE: scholarships and being able to take out the same amount of your 529 tax-free. I'm not totally sure how a "scholarship" is defined though, so be careful about that but as you describe it, I would THINK it would qualify.

On another note, how can you possibly know that grad school is a high probability for a current 2- and 6-year old? :D Who knows what their interests may/may not be. I say that only to suggest that I wouldn't personally "plan" for grad school in making decisions on the 529.

I think your plan is good and agree that 529 typical glidepaths are overly conservative. I have a 5- and 8-year old and am 100% stock now, even though the glidepath wouldn't be that...
by e5116
Tue Feb 20, 2024 11:14 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

LearnFin wrote: Tue Feb 20, 2024 10:01 pm While the market is up, indexes on equity are higher than the previous highs, my psldx portfolio is still down. Am I correct in my conviction to continue investing in psldx?
Nobody knows, but I'm sticking with it. Although my PSLDX investment is up (unlike yours) as I started beginning of last year. Of course, the past is meaningless as it relates to future performance but may impact your view of it. Hard to get over that psychological barrier. I still like it long term myself.
by e5116
Sat Feb 17, 2024 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4273
Views: 1072475

Re: Share your net worth progression

Hit the $2M+ mark in investable assets this month!! (Excludes home equity which is about $400k.) Took over 13 years after graduating and first job to hit $1M (joint with wife) and then only 3.5 years after that to hit $2M. (I was teetering on $1M for a looong time though as I was in spitting distance in March 2020, then....we all know what happened). I like keeping track of how long it takes for me to "make" $100k to see the power of compounding. The first $100k is definitely the hardest. Investable Assets Amount: Months to Achieve $100k: 38.3 $200k: 15.2 $300k: 20.5 $400k: 11.0 $500k: 29.4 [can be ignored since put 20% down on house payment so had to make up that] $600k: 9.0 $700k: 4.0 $800k: 14.2 $900k: 7.3 $1M: 9.1 $1.1M: 3.0 $...
by e5116
Thu Dec 14, 2023 9:05 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

PSLDX will probably equal to SP500 in total return this year after today. So any small downward shift in long bond interest will give it a push to overtake the broader market :D After a 2022 when PSLDX got absolutely crushed it is not really much consolation. Down 46% from 2007! : ( Don't pay attention to price chart, this fund distributes significant dividends so you'll have to look at total return chart. It's beating SP500 by ~3% on CAGR basis. Yep, PSLDX is in fact not down 46% from 2007, from August 2007 to now it's up +627%! That's how big of an impact the dividends are for this fund. Check out morningstar performance which includes it: https://www.morningstar.com/funds/xnas/psldx/chart I entered a position in PSLDX for the first time...
by e5116
Thu Dec 14, 2023 10:37 am
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

Today is yet another huge uptick for long-term bonds.
by e5116
Wed Dec 13, 2023 7:04 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

My Roth balance is looking up.... 😁 Nice for tax free growth and withdrawals.
by e5116
Sat Dec 09, 2023 11:07 pm
Forum: Investing - Theory, News & General
Topic: Best starter investment book for college kid?
Replies: 18
Views: 1647

Re: Best starter investment book for college kid?

There are a lot of great investment books out there that can be seen on the bogleheads wiki pages, but a lot of them are theory and fairly long. When I was a college senior, I wanted a crash course if you will on some personal finance topics and just copy/pasted CNN's money 101 topics into a word doc and learned a lot quickly because I knew nothing at the time. I just did a quick Google and see they still have a site called "money essentials" which might be worth a look. Not saying books aren't worthwhile but a site/blog approach that gives more practical money and investing education might also be worth considering recommendation assuming it provides some structure and organization across a broad range of topics.
by e5116
Mon Nov 06, 2023 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Home Sellers Win $1.8 Billion After Jury Finds Conspiracy Among Realtors
Replies: 421
Views: 46552

Re: Home Sellers Win $1.8 Billion After Jury Finds Conspiracy Among Realtors

I would be in favor of hourly charges for real estate agents. That is, you pay for their time just like you do in many other service-related industries. I went with a buyer's agent that offered this option 8 years ago (seller's agent still paid buyer's agent, but then the apply a rebate to the homebuyer as needed -- I actually went with a sliding scale rebate that gave more back if more expensive house vs. hourly charges). By paying by hour, if you need more/less help, you pay/don't as needed. Of course, this does have perhaps unintended consequences of people reducing number of showings because they don't want to pay for it, people perhaps not asking for help when they may need it -- but it also allows people to do the research on their ow...
by e5116
Sat Nov 04, 2023 8:11 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

I've been in since mid-January in two swaths of purchases and haven't sold or bought more. Keep on holding. I think I'm pretty flat, maybe a bit down even after the recent run up. Plan to buy more pending rate changes stabilizing, probably within next 6 months. I still like it long term. I am responding not only to this, but to dozens of posts in this and related threads: You only know if "rates were stabilizing" in retrospect, but not beforehand. Look at the 1964-1982 period. Tell me when you would have gone in and out with your "rates stabilizing" market timing. Don't tell me you would have gone in exactly in 1982, lol. Hint: When you anticipate based on indicators that "rates are stabilizing", everybody els...
by e5116
Sat Nov 04, 2023 11:42 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203985

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

^Yep, said another way, you don't get the "new" rate until you've completed 6 months of the prior rate. So, different bonds are earning different rates depending when within that six months range they were originally purchased. But, no matter what, everybody gets the same variable rate for 6 months, just might not be the same start/end months depending on purchase month.
by e5116
Sat Nov 04, 2023 11:36 am
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

I've been in since mid-January in two swaths of purchases and haven't sold or bought more. Keep on holding. I think I'm pretty flat, maybe a bit down even after the recent run up. Plan to buy more pending rate changes stabilizing, probably within next 6 months. I still like it long term.
by e5116
Mon Sep 11, 2023 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Illinois estate planning
Replies: 29
Views: 2342

Re: Illinois estate planning

Isn't a better solution to get out of IL? Yes, especially if you are retired, you may just want to move out of state. This is the simplest tax planning solution and solves all of your problems immediately. If you are far from retirement have an estate plan in place just in case, but don't stress about the estate tax given the unlikelihood of both you and your spouse dying at once. Then once the years roll by and you are fully retired, just move. Ironically, Retirement is about the best time to live in IL. When working, the tax burden is quite high (2nd overall in the nation). However two of the major contributors to that--state income tax and property tax--are dramatically reduced. First, IL does not consider any "retirement income&qu...
by e5116
Sun Sep 10, 2023 9:43 pm
Forum: Investing - Theory, News & General
Topic: Is CHARLES SCHWAB In Financial Trouble - Your Thoughts on the Subject??
Replies: 95
Views: 19009

Re: Is CHARLES SCHWAB In Financial Trouble - Your Thoughts on the Subject??

Kevin M wrote: Sun Sep 10, 2023 11:22 am Can't fathom why anyone would keep cash in Schwab checking, paying about 0.5%.
I have a small amount in Schwab checking to use for ATMs abroad given no foreign transaction fee and ATM reimbursements. I also have it as a secondary bank account for my Venmo since Venmo doesn't let spouses use the same account and my wife took our primary (joint) account on her Venmo.....but it's always less than $1k in there.
by e5116
Wed Aug 02, 2023 3:33 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

firebirdparts wrote: Wed Jul 12, 2023 2:40 pm Well, the truth is out now. It's going to be bigly up tonight. You must be living right.
It will be bigly down tonight....But, hey, up and down it goes. I continue to hold! And like it as a long-term tax-advantaged holding. I bought in late Jan this year, as well as added to the position last month.
by e5116
Wed Jun 07, 2023 9:20 am
Forum: Personal Investments
Topic: AVUV - difficult to hold
Replies: 185
Views: 18289

Re: AVUV - difficult to hold

AVUV certainly was not difficult to hold the past couple of days. Right on! I have purchased AVUV over the last few years, mostly starting my position in Feb 2021 and adding to it in January 2022. When compared to VTI, it has outperformed by 10% over the longer-time frame and by about 4% over the shorter-time frame. I guess the OP is talking about the 3/3-3/23 where it dropped 15% whereas VTI dropped only 3%. Prior drops over the 3-year period are somewhat more mirrored and this did seem to show a more extreme difference than prior drawdowns. Happens sometimes with a more concentrated fund, but I'm certainly sticking with it. AVUV got crushed with COVID in March 2020 and then was up over 100% over the next 18 months. So, comes with the ter...
by e5116
Mon Jun 05, 2023 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Best use of Chase points?
Replies: 59
Views: 6561

Re: Best use of Chase points?

I have unused chase credit worth around $1300 in cashback. Is there any better way to get this than a straight cashback? There used to be able to pay my bill for 25 percent discount (which is now unavailable). Only good thing seems like 15 percent discount on apple product. I may get an apple product in the future (just for the sake of using this points). Or should I simply get cashback? Thank you! It appears you have 130,000 points? Convert those to UA miles and depending on you travel plans, you may be able to redeem for an international one-way business class trip. That easily could be worth $5K. I convert to UA only when I find a flight that suits me. Not before that as I can use Chase points for other things. Once I transfer to UA, it...
by e5116
Mon Jun 05, 2023 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Travel rewards credit cards
Replies: 41
Views: 4472

Re: Travel rewards credit cards

With United's recent HUGE devaluation and basically all airlines going to dynamic award pricing (the exception is mile-based Avios charts), I find getting excised value out of travel redemptions exceedingly difficult. It really depends on how you use them. I live near a United hub (Washington), which makes United miles easier to use. I value the miles at 1.5 cents, because I have found that I can normally get a ticket from Washington to Los Angeles for 25,000 miles when the cost is $375. And my United credit card both gets me access to more frequent-flyer seats and gives a benefit equivalent to 3 cents per mile with double points on restaurant meals, hotels, and United flights. I use a different card when I wouldn't be getting the double p...
by e5116
Mon Jun 05, 2023 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Travel rewards credit cards
Replies: 41
Views: 4472

Re: Travel rewards credit cards

With United's recent HUGE devaluation and basically all airlines going to dynamic award pricing (the exception is mile-based Avios charts), I find getting excised value out of travel redemptions exceedingly difficult. Yes, you can get a "good value" out of business class redemptions, but I don't view it that way because I would never personally value the ticket at like $10k. I would NEVER pay that out of pocket, so don't see the award value being really 4 cents/point or whatever sometimes it comes out to. I've only booked award travel on economy or premium economy. Most recent redemptions (past few years): *60k RT to Copenhagen with 3-day layover in Amsterdam on United in August (Note: now this would cost ~40% more) *ORD-MAD on Ib...
by e5116
Wed May 24, 2023 2:22 pm
Forum: Personal Investments
Topic: Creating a Vanguard account just to do VTSAX to VTI conversion
Replies: 9
Views: 1276

Re: Creating a Vanguard account just to do VTSAX to VTI conversion

While doable, if you're a "buy and hold" investor, I personally don't think it's worth the trouble. Having a line item of VTSAX just sitting there isn't a big deal IMHO. You just add VTSAX and VTI together obviously. It's not really added complexity in the typical traditional sense that Bogleheads typically recommend reducing. But whatever floats your boat.

Disclosure: I hold VTSAX at Vanguard and VTI at Schwab. I view them as the same holding (since they are!) and don't think it adds any messiness to things at all. I, similarly, had a "holdover" investment and have had it this way for 10+ years....
by e5116
Tue May 23, 2023 1:09 am
Forum: Personal Finance (Not Investing)
Topic: Chicago Townhome Purchase - 5/5 ARM w/ Navy Federal?
Replies: 10
Views: 1473

Re: Chicago Townhome Purchase - 5/5 ARM w/ Navy Federal?

If you assume a little price appreciation and some tax savings from interest deductions, first time homebuyer credits, etc., buying is overall better, but not by much. But with kids likely coming, we want some additional space. One more question: the market in Chicago is so hot that we are being asked to sign before the appraisal is complete. The appraisal has been finished, but the report isn’t ready yet, and we are being asked by the seller to end attorney review tomorrow. Our contract includes an appraisal gap guarantee. Our broker tells us 99% chance the appraisal will come back at our contract price (2.5% above asking price), but wanted to check with you all too if you think this is a massive risk or just a bad practice in general. I ...
by e5116
Fri May 19, 2023 10:13 am
Forum: Personal Finance (Not Investing)
Topic: will vs revocable trust
Replies: 134
Views: 11410

Re: will vs revocable trust

Seems like in your situation, you can probably accomplish your goals through different means and they're all probably fine -- which is why attorneys are giving you different answers. I'm not an expert though like bsteiner and others who have replied to your post. My attorney (note I don't like in a uniform probate state) suggested a revocable trust for my assets (I have young children) to more easily disburse the funds in our desired fashion with a trustee in a piecemeal fashion affording more flexibility for now and the future should things change, on top of avoiding probate. Maybe it could have all been done within the will, but he indicated the trust would be cleaner/easier to update in the future as well. I did use PODs for certain acco...
by e5116
Wed May 17, 2023 10:11 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

Well I've had it since Jan/Feb (bought in two swaths) and am basically flat. I guess that's not too bad. I still like it as a long term hold.

I consider it like stock from a risk perspective, but count it as both from an asset allocation perspective (makes up more than 100% total).
by e5116
Mon May 15, 2023 3:05 pm
Forum: Personal Investments
Topic: Mutual Funds in taxable for the automatic investment option?
Replies: 4
Views: 520

Re: Mutual Funds in taxable for the automatic investment option?

if you're happy with this, why would this not work for them? (their situation could be different but you didn't specify any differences, so we can't say for sure). regarding cap gains, it shouldn't distribute cap gains because it's a market cap weighted fund and any changes to percentages of US to Int would be reflected in the change in market cap weighting automatically, not because of any action needed to be taken by any fund manager. If there were any cap gains for any reason, the amount would be dependent upon the size of the account. Less money invested would result in less cap gains, more invested would result in more. Concersns: 1.You might lose some foreign tax credit holding VT as opposed to holding total international as a standa...
by e5116
Mon May 15, 2023 10:55 am
Forum: Personal Investments
Topic: Newly Widowed and $9,000,000 in assets
Replies: 56
Views: 11666

Re: Newly Widowed and $9,000,000 in assets

I will echo the "gift now" (to your children/grandchildren) while you're still alive. Not only from an estate tax perspective, but I am a firm believer that giving your money while you and your children are younger: 1.) Has a more positive impact on their lives as getting money when you're 40 is much more impactful than when you're 70, 2.) Has a more positive impact on your life as you can WITNESS the benefits of your gift while you're still alive. If you have (adult) grandchildren, I personally also find leaving them some money (instead of just to your children), is a really nice/generous thing to do, but of course, everyone has their personal preference. If I am fortunate enough, I really don't want to leave a huge estate to my...
by e5116
Mon May 15, 2023 10:51 am
Forum: Personal Investments
Topic: Newly Widowed and $9,000,000 in assets
Replies: 56
Views: 11666

Re: Newly Widowed and $9,000,000 in assets

First, my condolences on your loss. I will echo the "gift now" (to your children/grandchildren) while you're still alive. Not only from an estate tax perspective, but I am a firm believer that giving your money while you and your children are younger: 1.) Has a more positive impact on their lives as getting money when you're 40 is much more impactful than when you're 70, 2.) Has a more positive impact on your life as you can WITNESS the benefits of your gift while you're still alive. If you have (adult) grandchildren, I personally also find leaving them some money (instead of just to your children), is a really nice/generous thing to do, but of course, everyone has their personal preference. Both in annual gifts as well as in your...
by e5116
Mon May 15, 2023 10:39 am
Forum: Personal Investments
Topic: Personal Finance / Portfolio Review - mid 30s high earner
Replies: 45
Views: 7577

Re: Personal Finance / Portfolio Review - mid 30s high earner

I thought the P was public? There are roles where you can make the salary noted in the OP while on PSLF? All I hear about is the bondage most MD's are in by about year 6 or 7 but they stick it out after crunching the numbers to get to year 10 and have 400k forgiven v going private and paying off their loans? I'm obviously ignorant on something? As mentioned, OP doesn't need a policy on spouse, but I'd get one for 5 years, it will be dirt cheap and 5 years from now you will have cleared most every hurdle if things stay even remotely similar to now. Most hospitals are considered non-profits. If you're a physician getting paid by a non-profit hospital, you can get your loans forgiven via PSLF. I know someone who hasn't had to pay off loans fo...
by e5116
Fri May 12, 2023 11:04 am
Forum: Personal Investments
Topic: Personal Finance / Portfolio Review - mid 30s high earner
Replies: 45
Views: 7577

Re: Personal Finance / Portfolio Review - mid 30s high earner

Thanks for the feedback. I'll take the lack of constructive criticism to mean there is little more I should change to optimize our circumstance - but very open to more if there is any! 3. Do continue using a mutual fund in your taxable account instead of (or in addition to) an ETF. My preference is Vanguard's total market index (VTSAX), but I'm sure fidelity's (FSKAX) is just as good for all intents and purposes. This allows you to automate your taxable investments, which will keep your investing life simple. Out of curiosity, why would you recommend a mutual fund instead of a comparable ETF? MattB suggested a mutual fund in order to automate the investments. In other words, you can set on "automatic investing" of $Xk twice a mon...
by e5116
Fri May 12, 2023 9:36 am
Forum: Personal Investments
Topic: Personal Finance / Portfolio Review - mid 30s high earner
Replies: 45
Views: 7577

Re: Personal Finance / Portfolio Review - mid 30s high earner

Please check what you have for Life Insurance, both lines are "His". You should have minimum 20 year term for both. Only I have term life. I laddered 2 policies. 1 for 10 years and another for 20 years. The plan was to wean off life insurance as the savings go up. My wife currently does not have term life. We could certainly explore adding to either front (hers or mine). I think this is a great strategy and wish more people did it. I think some have a tendency to overinsure. I want to be worth more alive than dead! :) But still have a 20-year policy (for both spouses, given we have about equal income). I think laddering two policies for you, and then the wife not having term life makes total sense. If you want, you could look int...
by e5116
Thu May 11, 2023 11:32 am
Forum: Personal Investments
Topic: Mega Cap Tech Stocks
Replies: 37
Views: 3364

Re: Mega Cap Tech Stocks

Hahaha, pretty expected replies. I will say that I actually do hold MGK in a taxable account as a SMALL holding. The vast majority of my money is still total stock market. I actually have somewhat of a "barbell" strategy tilting to Small-Cap Value and Mega-Cap Growth. I do find those two holdings tend to have some "diversification" effect, but I haven't backtested the performance. I assume it doesn't make all that much different for me, but I've liked the approach. I certainly would NOT want to be ONLY MGK, but a tilt seems okay to me. Edit: I just did a quick backtest from 2008 onward between 50/50 MGK/VIOV (Portfolio 1) and 100% VTI (Portfolio 2). The CAGR's are 10.05% and 9.09% respectively with max drawdown of -46% ...
by e5116
Thu May 11, 2023 11:00 am
Forum: Personal Investments
Topic: Mega Cap Tech Stocks
Replies: 37
Views: 3364

Re: Mega Cap Tech Stocks

Hahaha, pretty expected replies. I will say that I actually do hold MGK in a taxable account as a SMALL holding. The vast majority of my money is still total stock market. I actually have somewhat of a "barbell" strategy tilting to Small-Cap Value and Mega-Cap Growth. I do find those two holdings tend to have some "diversification" effect, but I haven't backtested the performance. I assume it doesn't make all that much different for me, but I've liked the approach. I certainly would NOT want to be ONLY MGK, but a tilt seems okay to me. Edit: I just did a quick backtest from 2008 onward between 50/50 MGK/VIOV (Portfolio 1) and 100% VTI (Portfolio 2). The CAGR's are 10.05% and 9.09% respectively with max drawdown of -46% a...
by e5116
Sat May 06, 2023 7:58 am
Forum: Investing - Theory, News & General
Topic: Schwab - settlement account pays close to nothing heads up
Replies: 48
Views: 11028

Re: Schwab - settlement account pays close to nothing

Why would you have any money in your IRA in a settlement fund? No excuse, sir. Poor Management led me to lose track of the $16. You shouldn't be concerned about not getting MM interest on $16 of cash. That could hardly be called "poor management." That's pennies. The PSA is still fine as it may be more impactful for others who have a large amount in Schwab's settlement fund, but for your current situation it's basically meaningless. I actually have an impactful situation for an account I don't control but know about for a family member. Someone is the guardian and can't make any trades without some specific approval given. There's currently like $150k in Schwab cash and I told them to try to move it to a MM a year ago and it stil...
by e5116
Fri Apr 21, 2023 1:30 pm
Forum: Personal Investments
Topic: AVUV - difficult to hold
Replies: 185
Views: 18289

Re: AVUV - difficult to hold

I guess I'm not understanding the hand wringing on this. Since inception, it's up 47% compared to 36% for VBR and 23% for VTI. In the last year, AVUV is -8.9% while VTI is -8.6%, virtually identical. The only period that I can see the lag is YTD (four months!) where VTI is +7% and AVUV is -1%. This is because mega-cap growth (read: big tech) has had a resurgence and is a huge component of VTI nowadays. I like AVUV as a diversifier and hold it (albeit not a huge amount). It holds a 5-star Morningstar rating which is meaningless as it relates to future predictions, but actually does tell you how it's performed historically compared to similar frunds (i.e. it's performed well). I also hold VBR, VIOV, and SLYV, so a bunch of small value ETFs. A...
by e5116
Wed Apr 19, 2023 10:00 am
Forum: Investing - Theory, News & General
Topic: 20 Years for SP500 to Recover
Replies: 340
Views: 42574

Re: 20 Years for SP500 to Recover

Yes, but most of the portfolio was due to the contributions while the returns from the market were abysmal, so all those talk that the first 100k are the hardest and then at some point the effect of compound interests overshadow the contribution and money works for you do not really apply for this particular period. Exactly. But at least the inflation was compensated. It's not interest, it's compounding by capital appreciation and it's not guaranteed. There is no guarantees in investing in a broad based stock market index fund. Investing has risks I think we underestimate the mental fortitude needed to save for 20 years and see that your portfolio is almost equal to your contributions and we should probably tone down the role of compoundin...
by e5116
Wed Mar 08, 2023 10:58 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203985

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

I started out in the chasing yield camp but am migrating a bit toward long-term inflation protected camp. Our current portfolio has 80k sitting in our gift boxes with last delivery in 2026...plus 40k sitting in our accounts. I'm fine with that regardless of what happens to rates going forward. Contemplating whether or not to buy another 20k in April. Oct-Jan inflation has been very low...we'll see what Feb and Mar bring. But if it stays low for the full six months (translating into a new low variable rate), that would make for a somewhat uninspiring blended yield over 12 months. However, I do wonder if, for a variety of reasons, the inflation data over the last four months has been depressed because of transient factors....and if inflation...
by e5116
Tue Feb 28, 2023 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4273
Views: 1072475

Re: Share your net worth progression

Both 37, 2 kids, HCOL Liquid Net Worth (xHome Equity) | Total Net Worth 2015: 262K | 370K 2016: 343K | 500K 2017: 466K | 641K 2018: 505K | 709K 2019: 721K | 938K 2020: 871K | 1.11M 2021: 1.28M | 1.65M Strong annual raises since 2016 and a promotion to start 2021 has helped quite a bit, driving more of our 42% post-tax savings rate than any sort of frugal habits. Drive two 2013 vehicles and in the same house we bought in 2011 on much lower incomes (though I'm itching to move bigger). My best estimate has us getting to $2m liquid net worth by the end 2025, which can be accelerated either by a promotion or continued strong market performance and assumes we don't move. Liquid Net Worth (xHome Equity) | Total Net Worth 2015: 262K | 370K 2016: 3...
by e5116
Thu Feb 23, 2023 12:51 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

Bosro wrote: Wed Feb 22, 2023 2:30 pm Anyone know what size Schwab account receives the one free fund family treatment?
I don't see it formally published anywhere. I think it's like $500k, but nobody has a clear answer and seems to be up to the discretion of the person you ask to some extent.
by e5116
Tue Feb 21, 2023 7:58 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

Today not good .... probably one of the worst in quite some time down about 4%.
by e5116
Tue Feb 14, 2023 10:01 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

lawyeredCLO wrote: Mon Feb 13, 2023 1:16 pm
kevinf wrote: Mon Feb 13, 2023 10:53 am They've allowed themselves a lot of leeway as to what dervitive types they can use as well as the option to deleverage stocks entirely.
When you compare to 50/50 SSO/UPRO on Portfolio Visualizer PSLDX outperforms. I am wondering what causes that - whether reduced volatility decay, alpha on the bond side, or something with the derivates. I find it interesting.

https://tinyurl.com/2p82sp6c (portfolio visualizer)
Psldx practices active management on the bond side, and isn't strictly holding treasuries. In fact, I believe it has more corporates than treasuries.
by e5116
Sat Feb 11, 2023 9:47 am
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

mt2k wrote: Thu Feb 09, 2023 2:32 pm
getjiggy wrote: Sun Feb 05, 2023 10:09 pm What do you all use to track the performance of PSLDX on an ongoing basis? The typical websites like Yahoo Finance miss the dividends / capital gains and just give the return per the share price.
Morningstar
I use Morningstar too as well as the direct PIMCO page:
https://www.pimco.com/en-us/investments ... -fund/inst
by e5116
Tue Jan 31, 2023 4:34 pm
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

If you can buy ETFs, you would not need PSLDX. It doesn’t make sense. PS came here to post share price is over $5! UPRO/TMF is NOT the same as PSLDX. UPRO/TMF has a lower risk adjusted return than PSLDX.. Especially if one has a low fee way of buying PSLDX. Yep, I also like PSLDX for simplicity AND cost. Both Boglehead principles. It's lower cost (0.6%ish ER) than UPRO/TMF (which have other costs associated with them, I think 0.9%ish), I don't have to worry about rebalancing between two ETFs, and at Vanguard, I can't buy UPRO/TMF anyways, and PSLDX is slightly less leveraged (2xish instead of 3x) which I like. And for me, it's free to buy too. :) Downsides are certainly that you can't hold PSLDX in taxable, but that wasn't my plan anyways....
by e5116
Sat Jan 28, 2023 11:21 am
Forum: Personal Investments
Topic: Paying for [ivy league school]
Replies: 214
Views: 19819

Re: Paying for [ivy league school]

While we are confident that he would have been accepted to other institutions, we have chosen to accept this offer and enroll him in this particular school. Not to unnecessarily pry, but did your son choose this offer of admission, did you choose it for him/her or did you all choose it together? And if he was part of this decision, what information (if any) did he consider as far as costs? In other words, was his decision based upon the expectation that his costs would be covered without the need for work or loans? Thanks for suggesting, but problem at hand is cash generation for paying. Gifting will require even more income... Planning for Loan forgiveness? Do you really believe it can work for anyone? Esp. us, who couldn't plan for colle...
by e5116
Thu Jan 26, 2023 10:16 am
Forum: Personal Investments
Topic: Paying for [ivy league school]
Replies: 214
Views: 19819

Re: Paying for [ivy league school]

If an Ivy isn't affordable to the OP, shopping around for a better deal (and perhaps merit $) is as old as capitalism itself. As of Jan 18, 2023, the average annual pay for an Ivy League Graduate in the United States is $66,173 a year. Comparable schools OP could consider as examples: Duke: Average starting salary about $93,000 Stanford: Average starting salary, also roughly $93,000 U of Chicago: Average starting salary: $$76,730 Perhaps a notch down to gain merit $: Carnegie Mellon average starting salary: $70,900 Northwestern U average starting salary about $72,000 University of Michigan: $75,842 Rice University: $72,400 I understand attending an Ivy has other benefits that are tougher to measure, but the OP has options if Ivy isn't affo...
by e5116
Thu Jan 19, 2023 11:36 am
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

I just submitted a "buy" order so taking the plunge today! Wish me luck...Seems to be a good day with both equities/long bonds down big. But it was random chance because sold a Vanguard fund yesterday and can't exchange it directly into non-Vanguard fund so one day out of market not by choice. Got lucky with the one day this time. But intentionally split it up to mitigate that risk (and plan to do another buy) so the luck/chance could reverse itself next purchase.

Seems like a reasonably entry point for a long-term hold in my Roth. Hoping for that tax free growth over the next 20 years!

And the reverse split makes sense to me. Being priced around 10 always seemed low to me. It's optics.
by e5116
Wed Jan 11, 2023 9:54 am
Forum: Investing - Theory, News & General
Topic: Do I need FDIC insued?
Replies: 9
Views: 1237

Re: Do I need FDIC insued?

I don't personally worry about it. There's no way that Fido/Vanguard/Schwab et all will collapse and no gov't entity/other company would step in to make investors' cash/MM funds whole. So, the likelihood of collapse is minuscule and the likelihood of lack of saving after a collapse is also minuscule. I guess there could be some shenanigans with a particular fund/investment, but that still would have safeguards. I think FDIC insurance is overblown typically except for maybe like a tiny local bank -- in that case, FDIC is definitely key.
by e5116
Mon Jan 09, 2023 9:39 am
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

I'll be honest, I'm looking to time my entry into this fund in my Roth (which is unlike me) for a long-term hold. I have been waiting to transfer from Wellington to this, and felt the market conditions last year weren't great to hold PSLDX (turns out I was right, but of course, that's lucky too). Because of the large minimum $50k at Vanguard, I'm trying to be a bit more cautious. Can't time it perfectly, but I'm thinking Q1 sometime. And I view PSLDX as basically a supercharged Wellington to an extent (Diversified with stocks and bonds, but in a leveraged capacity). On Friday, PSLDX went up 4%. I also will be out of the market for a day, which is annoying as can't do an exchange directly into a non-Vanguard fund. Vanguards minimum initial ...
by e5116
Mon Jan 09, 2023 9:08 am
Forum: Investing - Theory, News & General
Topic: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]
Replies: 2106
Views: 391698

Re: Why not 100% PSLDX? [PIMCO StocksPLUS Long Duration Fund]

I'll be honest, I'm looking to time my entry into this fund in my Roth (which is unlike me) for a long-term hold. I have been waiting to transfer from Wellington to this, and felt the market conditions last year weren't great to hold PSLDX (turns out I was right, but of course, that's lucky too). Because of the large minimum $50k at Vanguard, I'm trying to be a bit more cautious. Can't time it perfectly, but I'm thinking Q1 sometime. And I view PSLDX as basically a supercharged Wellington to an extent (Diversified with stocks and bonds, but in a leveraged capacity). On Friday, PSLDX went up 4%. I also will be out of the market for a day, which is annoying as can't do an exchange directly into a non-Vanguard fund.